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Reuters
2 days ago
- Business
- Reuters
Breakingviews - Wise's US listing switch lacks financial wisdom
LONDON, June 5 (Reuters Breakingviews) - Wise (WISEa.L), opens new tab helps customers exchange money more cheaply, transparently and, well, wisely. But the $15 billion firm's plan, opens new tab to shift its primary listing to New York from London seems less clever. CEO, co-founder and largest shareholder Kristo Käärmann wants to tap deeper pools of liquidity and attract more American investors. Yet for a company already trading at a premium valuation, the move raises more questions than it answers. Käärmann's case rests on two key points. Wise's shares are thinly traded in London, meaning investors risk moving the market by offloading stock in large volumes. Second, a U.S. listing would boost the company's appeal to American investors and even customers. There's truth to both. The total daily value of Wise's trading volume has averaged about half of $4 billion American peer Remitly Global over the past two years according to a Breakingviews analysis of LSEG data, even though the London-listed group is much bigger. And some domestic-focused U.S. investors prefer to hold stocks listed in their home market. Yet Wise needn't cross the Atlantic Ocean to boost liquidity. One possible obstacle to winning more investors at home is the company's quirky governance, where Class B owners have nine votes per share. The effect is that Käärmann has a tight grip on the company despite owning less than 20% of the tradable Class A stock, according to LSEG data. The alternative to hopping across the pond would be to get rid of some of the CEO's special rights, which could in turn smooth Wise's entry into Britain's main stock benchmark, the FTSE 100 Index (.FTSE), opens new tab. That would boost liquidity to U.S. levels: LSEG research, opens new tab found that, relative to the volume of companies' tradable shares, FTSE 100 trading levels were slightly higher than in the S&P 500 Index (.SPX), opens new tab in 2022. Nor is the United States Wise's biggest geography, as it was for other listing switchers like CRH and Ferguson Enterprises. For Käärmann's company, the American market comes third after Europe and Asia, making up 20% of group revenue. As for brand awareness, switching trading venue seems like a strange way to gain publicity compared with a marketing campaign. Moving the listing also brings possible downside. Wise trades at 29 times consensus 2027 earnings – beating Remitly, Block, PayPal and others. Other metrics tell the same story: there's no evidence of a valuation penalty because of the company's UK trading venue. That means Käärmann has much to lose if the company ends up as one of the many 'orphaned' pond-hoppers, which switch listing but never quite catch fire in the U.S. market. Research by think tank New Financial earlier this year found that just 44% of the 16 European companies that had moved across the Atlantic subsequently beat the performance of their home continent. The one consolidation is that this doesn't seem to be about extra CEO pay: Käärmann, as a major shareholder, has taken a roughly 200,000-pound ($270,000) cash salary in recent years, which is tiny compared to most bosses. There are no plans to raise that, according to a person familiar with the matter. But for investors, Wise's shift looks like a poor financial trade-off. Follow Karen Kwok on LinkedIn, opens new tab and X, opens new tab.
Gulf Insider
27-05-2025
- Business
- Gulf Insider
Indian Billionaire Sold ₹1.24 Lakh Cr Company for ₹74
The heartbreaking story of of BR Shetty, an Indian-origin businessman, who once owned several companies in the United Arab Emirates (UAE), had net worth of over Rs 12,000, and lived a life of prime luxury– is a profound example of how quickly one's fortunes can turn to ash due to one critical mistake, and send any person tumbling into the depths of obscurity. Who is BR Shetty? Born in a lower middle-income home in Udupi, Madras Presidency, then British India (now Karnataka, India), on August 1, 1942, Bavaguthu Raghuram Shetty, or BR Shetty as he is popularly known, was once among the wealthiest people on the planet, ranking on the Forbes list of India's 100 Richest People in 2015, and the 42nd richest person in 2019. BR Shetty began his career as a medical representative, and at age of 31, immigrated to Dubai, UAE in 1973 in search of better opportunities. Reports claim that Shetty came to Dubai with just $8 to his name, and worked as a door-to-door salesman, selling medicines. However, in short period, BR Shetty developed contacts with some wealthy and influential people, and a few years later, established the New Medical Center Health (NMC), UAE's first private healthcare provider company, in Dubai. UAE's first private healthcare provider The hospital was managed by BR Shetty's wife, Chandrakumari Shetty, who was the only doctor in the clinic, at the time. Today, NMC is the largest private healthcare provider in the UAE with over four million patients annually across 45 facilities spread over 12 cities and 8 countries, including UAE, KSA, Oman, Spain, Italy, Denmark, Colombia, and Brazil. NMC is also the first healthcare company from the Gulf Cooperation Countries (GCC) and the first company from Abu Dhabi to be listed on the premium segment of the London Stock Exchange and was part of the coveted FTSE 100 Index. However, the firm was de-listed from London Stock Exchange and removed from FTSE 100 index, following a request from its board of directors, and due to the on-going investigation of alleged financial irregularities. Apart from NMC, BR Shetty also founded the UAE Exchange, a company dealing in remittance, foreign exchange, and bill payment services. During the late 70s, Shetty observed that Indian expatriates living in UAE faced difficulties in sending money to their families back home in India, and thus landed upon the idea to establish the UAE Exchange, which in 2016, opened 800 offices in 31 countries. In 2003, BR Shetty founded NMC Neopharma, a UAE-based pharmaceutical manufacturer, which was inaugurated by the then President of India, A. P. J. Abdul Kalam in Abu Dhabi. BR Shetty – From riches to rags Over the years, BR Shetty's wealth ballooned thanks to owing to his diversified and successful business ventures which ranged from health, finance, to real estate, and capital investment. At one point, BR Shetty had a net worth of $3 billion (around Rs 20,000 crore), making him one of the wealthiest men globally. The Indian-born business tycoon lived a life of opulence, owned private jets and a fleet of Rolls Royce vehicles, and even bought two entire floors in the lavish Burj Khalifa, besides several luxurious villas across Dubai. However, fate took a cruel turn when in 2019, US-based short-seller Muddy Waters Research levelled damning allegations against BR Shetty's companies. In a post on X (former Twitter), the short-seller posted a report revealing that Shetty's firm owed a $1 billion debt which was kept secret from the company's investors. What did the short-seller's report claim? In its report, Muddy Waters Research alleged that Shetty had hid the debt from his investors and defrauded them by exaggerating cash flow figures. Following the allegations, the shares of Shetty's companies went into freefall, ultimately forcing him sell his Rs 12,478 crore company to the Israel-UAE consortium for just Rs 74. In 2020, amid investigations, BR Shetty resigned from his board position, and on April 8 that year, NMC Health went into Administration in the United Kingdom due to concerns over corporate governance and a share price in freefall. In the same month, Abu Dhabi Commercial Bank filed a criminal complaint against NMC Health with the UAE Attorney General's Office, and days later, the Central Bank of UAE ordered the freezing of Shetty's bank accounts and the blacklisting of his firms. The embattled businessman is also under investigation in India, with agencies initiating a probe to identify potential risks to Indian banks. According to reports, Shetty's current net worth is a minute fraction of his earlier $3.5 billion fortune, consequently leading Forbes to drop him from its annual list of billionaires in 2020. Also read: UAE Fines 23 Companies Dh610,000 For Violating Global Tax Reporting Rules
India.com
25-05-2025
- Business
- India.com
Meet Indian billionaire, owned two floors in Burj Khalifa, had Rs 18000 crore net worth, was forced to sell Rs 124000 crore company for just Rs 74 due to…
BR Shetty went bankrupt after a damning 2019 report by short-seller Muddy Waters Research exposed accused him of financial fraud. (File) The heartbreaking story of of BR Shetty, an Indian-origin businessman, who once owned several companies in the United Arab Emirates (UAE), had net worth of over Rs 12,000, and lived a life of prime luxury– is a profound example of how quickly one's fortunes can turn to ash due to one critical mistake, and send any person tumbling into the depths of obscurity. Who is BR Shetty? Born in a lower middle-income home in Udupi, Madras Presidency, then British India (now Karnataka, India), on August 1, 1942, Bavaguthu Raghuram Shetty, or BR Shetty as he is popularly known, was once among the wealthiest people on the planet, ranking on the Forbes list of India's 100 Richest People in 2015, and the 42nd richest person in 2019. BR Shetty began his career as a medical representative, and at age of 31, immigrated to Dubai, UAE in 1973 in search of better opportunities. Reports claim that Shetty came to Dubai with just $8 to his name, and worked as a door-to-door salesman, selling medicines. However, in short period, BR Shetty developed contacts with some wealthy and influential people, and a few years later, established the New Medical Center Health (NMC), UAE's first private healthcare provider company, in Dubai. UAE's first private healthcare provider The hospital was managed by BR Shetty's wife, Chandrakumari Shetty, who was the only doctor in the clinic, at the time. Today, NMC is the largest private healthcare provider in the UAE with over four million patients annually across 45 facilities spread over 12 cities and 8 countries, including UAE, KSA, Oman, Spain, Italy, Denmark, Colombia, and Brazil. NMC is also the first healthcare company from the Gulf Cooperation Countries (GCC) and the first company from Abu Dhabi to be listed on the premium segment of the London Stock Exchange and was part of the coveted FTSE 100 Index. However, the firm was de-listed from London Stock Exchange and removed from FTSE 100 index, following a request from its board of directors, and due to the on-going investigation of alleged financial irregularities. Apart from NMC, BR Shetty also founded the UAE Exchange, a company dealing in remittance, foreign exchange, and bill payment services. During the late 70s, Shetty observed that Indian expatriates living in UAE faced difficulties in sending money to their families back home in India, and thus landed upon the idea to establish the UAE Exchange, which in 2016, opened 800 offices in 31 countries. In 2003, BR Shetty founded NMC Neopharma, a UAE-based pharmaceutical manufacturer, which was inaugurated by the then President of India, A. P. J. Abdul Kalam in Abu Dhabi. BR Shetty – From riches to rags Over the years, BR Shetty's wealth ballooned thanks to owing to his diversified and successful business ventures which ranged from health, finance, to real estate, and capital investment. At one point, BR Shetty had a net worth of $3 billion (around Rs 20,000 crore), making him one of the wealthiest men globally. The Indian-born business tycoon lived a life of opulence, owned private jets and a fleet of Rolls Royce vehicles, and even bought two entire floors in the lavish Burj Khalifa, besides several luxurious villas across Dubai. However, fate took a cruel turn when in 2019, US-based short-seller Muddy Waters Research levelled damning allegations against BR Shetty's companies. In a post on X (former Twitter), the short-seller posted a report revealing that Shetty's firm owed a $1 billion debt which was kept secret from the company's investors. What did the short-seller's report claim? In its report, Muddy Waters Research alleged that Shetty had hid the debt from his investors and defrauded them by exaggerating cash flow figures. Following the allegations, the shares of Shetty's companies went into freefall, ultimately forcing him sell his Rs 12,478 crore company to the Israel-UAE consortium for just Rs 74. In 2020, amid investigations, BR Shetty resigned from his board position, and on April 8 that year, NMC Health went into Administration in the United Kingdom due to concerns over corporate governance and a share price in freefall. In the same month, Abu Dhabi Commercial Bank filed a criminal complaint against NMC Health with the UAE Attorney General's Office, and days later, the Central Bank of UAE ordered the freezing of Shetty's bank accounts and the blacklisting of his firms. The embattled businessman is also under investigation in India, with agencies initiating a probe to identify potential risks to Indian banks. According to reports, Shetty's current net worth is a minute fraction of his earlier $3.5 billion fortune, consequently leading Forbes to drop him from its annual list of billionaires in 2020.
India.com
21-05-2025
- Business
- India.com
Meet The Person Who Once Had a Rs 18,000 Crore Empire, Owned 2 Floors In Burj Khalifa – Now Bankrupt Due to This…He is…
New Delhi: It sounds like a plot straight out of a Bollywood tragedy: a man arrives in a foreign land with just a few dollars in his pocket, builds a business empire worth billions, rubs shoulders with royalty, lives in the Burj Khalifa and then, almost overnight, loses it all. But this is not a fiction. This is the real-life story of Bavaguthu Raghuram Shetty, also known as BR Shetty, once a symbol of Indian entrepreneurial success in the United Arab Emirates (UAE), now a cautionary tale of how fortunes can vanish with one misstep. Shetty was born on August 1, 1942 at Udupi in Karnataka (then Madras Presidency under British India). Holding a degree in pharmacy and having big dreams, he moved to Dubai in 1973 at the age of 31 with just $8 to his name. He began as a medical representative, going door-to-door selling medicines. His hard work and charisma soon connected him with the right people. By 1975, he founded the New Medical Centre (NMC), UAE's first private healthcare clinic. It was a small clinic run by his wife, Dr. Chandrakumari Shetty, the only doctor at the centre. Building An Empire From that modest clinic, NMC Health exploded into a massive healthcare network, which now treats over four million patients every year across 45 facilities in 12 cities and eight countries – which include Colombia, Brazil, Spain, Oman and Saudi Arabia. Now, the NMC did not stay local, it became the first healthcare company in the Gulf to be listed on the London Stock Exchange. It joined the FTSE 100 Index, a spot reserved for the top 100 companies in the United Kingdom. But Shetty did not stop there. In the late 1970s, he noticed how hard it was for Indian expats to send money back home. That insight gave birth to the UAE Exchange, which would grow into one of the largest money transfer companies in the world. It operates in 31 countries with 800 offices. Then came NMC Neopharma in 2003, a pharmaceutical venture inaugurated by then-President APJ Abdul Kalam. Shetty's business interest expanded to finance, real estate and beyond. With each passing day, his empire became diverse, powerful and invincible. By 2019, BR Shetty's net worth hit $3 billion (around Rs 20,000 crore). He owned private jets, a fleet of Rolls Royce cars and two entire floors in the Burj Khalifa, the world's tallest building. His name was among Forbes India's 100 Richest People at 42nd rank in 2019. In short, he had it all: success, influence and unimaginable wealth. One Report That Changed Everything Disaster struck in December 2019. Muddy Waters Research, a US-based short-selling firm, published a damning report. It accused Shetty's companies of hiding $1 billion in debt and inflating cash flows to mislead investors and regulators. That single report sent shockwaves through the financial world. Investors panicked. Shares of NMC Health plummeted. Shetty's Rs 12,478 crore company was sold for just Rs 74 to an Israel-UAE consortium. Yes, you heard it right: not Rs 74 crore, just Rs 74. Shetty had resigned from NMC's board by early 2020. The company entered administration in the United Kingdom. Investigations began. Allegations of financial misconduct spread across the UAE and India. Legal Troubles Soon after, Abu Dhabi Commercial Bank filed a criminal complaint against NMC. The UAE Central Bank froze Shetty's accounts and blacklisted his firms. Indian agencies too launched probes into his financial activities, especially to assess exposure for Indian banks. All of it came crashing down: the empire, the reputation and the money. Forbes dropped him from its billionaire list in 2020. His current net worth is reportedly just a sliver of what it once was. Once hailed as a rags-to-riches icon, Shetty now lives in near-complete obscurity. Once in headlines for his business conquests, he is now featured in legal briefs and audit reports. His is a story of dreams fulfilled and then shattered and of ambition that soared and trust that crumbled. BR Shetty's journey highlights that even the grandest towers can fall when built on shaky foundations.
Business Times
14-05-2025
- Business
- Business Times
Burberry to cut 1,700 jobs in turnaround bid
[LONDON] Burberry Group plans to cut almost a fifth of its workforce as its new chief executive officer tries to turn around the British trench-coat maker, after its push into high fashion flopped amid slumping global demand for luxury goods. The London-based company plans an additional £60 million (S$103.9 million) of savings in the next two years, affecting as many as 1,700 roles – equivalent to 18 per cent of its global workforce. The savings are on top of the £40 million set out by chief executive officer Joshua Schulman in November. Burberry's shares rose as much as 10 per cent, the most in just over a month on an intraday basis. The company's struggles ousted it from the UK's benchmark FTSE 100 Index last year, and uncertainty surrounding US President Donald Trump's trade tariffs has weighed on the stock so far in 2025. Most job cuts will be office roles in the UK, Schulman told reporters on a call Wednesday (May 14), though global retail positions will be affected. He also said the Burberry's apparel manufacturing site in Castleford, northern England, will scrap its night shift to tackle over-capacity. The move will affect about a quarter of jobs there, chief financial officer Kate Ferry said, declining to say how many workers the plant has. Turnaround bid Schulman, who joined in July, has vowed to turn around a brand struggling to recover its appeal with so-called aspirational consumers. A cost-of-living crisis has crimped demand, while Burberry faces a lack of appetite for creations by designer Daniel Lee, who's been at the company for more than two years. So far, Schulman has tried to lift the popularity of Burberry's outerwear – including trench coats with their distinctive beige check that cost about £2,000 – and has indicated less focus on handbags that are not part of its heritage. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Under Schulman, Burberry has put out ad campaigns with British celebrities such as Kate Winslet and Jerry Hall in a bid to appeal to a wider customer base. The company will also increase store staff at peak times, he said on the call. Among the new planned cost savings, Burberry cited procurement and real estate, and said job cuts would be subject to consultation where applicable. The company expects one-off costs of about £80 million from the overall plan. In 2020, the company cut 500 positions as demand for luxury goods waned during global pandemic lockdowns. The latest cuts came as Burberry reported sales fell less than expected in the fourth quarter, while its adjusted operating profit for the year also came in higher than the analysts predicted at £26 million. Still, that is far short of the £418 million reported a year earlier. Though the cost savings are welcome, 'time is running out for Burberry,' Charlie Huggins, manager of the quality shares portfolio at investment adviser Wealth Club, said in a note. 'Investors have seen several failed turnaround plans from Burberry in recent years. This one feels like a last chance saloon.' BLOOMBERG
